Segment and net sales information

12 Months Ended

Jul. 31, 2025

Segment Reporting [Abstract]

Segment and net sales information

Note 2. Segment and net sales information

The Company reports its financial results of operations on a geographical basis in the following two reportable segments which are also operating segments: United States and Canada. Each segment generally derives its revenues in the same manner as described in Note 1, Summary of significant accounting policies. The Company uses adjusted operating profit as its measure of segment profit. Certain income and expenses are not allocated to the Company’s segments and, thus, the information that management uses to make operating decisions and assess performance does not reflect such amounts.

This segment structure reflects the financial information and reports used by the Company’s management, specifically its chief operating decision makers (“CODM”), to make decisions regarding the Company’s business, including resource allocations and performance assessments, as well as the current operating focus in compliance with ASC 280, Segment Reporting. The Company’s CODM are the Chief Executive Officer and the Chief Financial Officer.

The significant expenses reviewed by the CODM include operating costs and costs of sales. The operating costs evaluated by the CODM are primarily SG&A, including depreciation expense on long lived assets and software amortization expense.

The CODM use segment adjusted operating profit to evaluate performance and allocate resources (including employees, property, and financial or capital resources) in conjunction with the annual budget process, as well as during periodic business reviews.

Segment results were as follows:

	For the years ended July 31,
(In millions)	2025	2024	2023
Net sales:
United States	$29,269	$28,195	$28,291
Canada	1,493	1,440	1,443
Total net sales	$30,762	$29,635	$29,734
Cost of sales:
United States	(20,238)	(19,528)	(19,650)
Canada	(1,089)	(1,054)	(1,059)
Operating costs:
United States	(6,191)	(5,847)	(5,749)
Canada	(338)	(326)	(308)
Adjusted operating profit:
United States	2,840	2,820	2,892
Canada	66	60	76
Total segment adjusted operating profit	2,906	2,880	2,968
Central and other costs(1)	(64)	(56)	(51)
Restructuring and impairment expenses(2)	(80)	(28)	(125)
Amortization of acquired intangible assets	(156)	(144)	(133)
Interest expense, net	(190)	(179)	(184)
Other expense, net	7	(9)	(11)
Income before income taxes	$2,423	$2,464	$2,464

(1)Primarily includes SG&A, including depreciation expense on long lived assets and software amortization expense that is not related to a segment.

(2)See Note 18, Restructuring and impairment expenses for further information.

Capital expenditures and depreciation and amortization by segment were as follows:

	For the years ended July 31,
(In millions)	2025	2024	2023
Capital expenditures:
United States	$300	$353	$423
Canada	5	19	18
Total capital expenditures	$305	$372	$441
Depreciation and amortization:
United States	$356	$323	$313
Canada	17	12	8
Total depreciation and amortization(1)	$373	$335	$321
(1) Includes amortization of acquired intangible assets of $156 million, $144 million and $133 million in 2025, 2024 and 2023, respectively. These amounts are not included in segment adjusted operating profit.

Assets by segment included:

	As of July 31,
(In millions)	2025	2024
Assets:
United States	$15,757	$14,795
Canada	1,008	898
Total segment assets	16,765	15,693
Corporate	964	879
Total assets	$17,729	$16,572

Long-lived assets are as follows:

	As of July 31,
(In millions)	2025	2024
Long-lived assets:
United States	$1,795	$1,699
Canada	51	53
Total long-lived assets	$1,846	$1,752

Net sales disaggregation

A disaggregation of net sales by end market is as follows:

	For the years ended July 31,
(In millions)	2025	2024	2023
United States:
Residential	$14,598	$14,464	$14,820
Non-residential:
Commercial	10,088	9,431	9,213
Civil/Infrastructure	2,609	2,396	2,344
Industrial	1,974	1,904	1,914
Total Non-residential	14,671	13,731	13,471
Total United States	29,269	28,195	28,291
Canada	1,493	1,440	1,443
Total net sales	$30,762	$29,635	$29,734

No sales to an individual customer accounted for more than 10% of net sales during any of the last three fiscal years.

The Company is a value-added distributor in North America, providing a wide range of products from plumbing, HVAC, appliances, and lighting to PVF, water and wastewater solutions, and more. We offer a broad line of products, and items are regularly added to and removed from the Company's inventory. Accordingly, it would be impractical to provide sales information by product category due to the way the business is managed, and the dynamic nature of the inventory offered.